Most Asia-Pacific stock indices fell on 15 September amid an artificial intelligence sector sell-off and expectations of policy rate hikes by central banks, although Japan bucked the regional trend. The Nikkei index rose 0.29 percent to 63,678 points. In Jakarta, the Jakarta Composite Index fell 0.87 percent to 6477 by 11:37 WIB.
Tech shares lead regional declines
The regional pressure followed sharp drops across major chipmakers on 14 September. Intel fell at least 5 percent. Broadcom dropped at least 4 percent, while Advanced Micro Devices also fell at least 4 percent. Marvell Technology dropped at least 7 percent, and Nvidia declined 3 percent.
Major AI companies have increasingly relied on debt and circular financing to fund capital expenditure while global borrowing costs are elevated. OpenAI indicated it will not proceed with initial public offering plans this year due to safety concerns. In Hong Kong, the Hang Seng index declined 0.4 percent to 24817, while South Korea’s Kospi fell 0.54 percent to 6648, and the Shanghai Composite lost 0.1 percent to 3,881.41.
Central bank decisions weigh on sentiment
Investors also tracked monetary policy expectations across major economies. The Bank of Japan is projected to deliver a 25 basis points rate hike, which would lift its rate to 1.25 percent. Bank Indonesia faces a potential 25 basis points benchmark rate hike that would bring its rate to 6 percent.
Rully, Head of Research and Chief Economist at Mirae Asset Sekuritas, said at a virtual event on Tuesday that signals from other central banks, including Japan, Europe, and the UK, could hold back dollar strengthening amid a hawkish backdrop. The projected range around which the dollar is held stands around 100.
